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HMRC seek views
The reduced rate of VAT for energy saving materials installed in buildings used solely for a relevant charitable purpose is to be withdrawn because it is not permitted under European law.
HMRC are seeking the views of those affected on the following questions:
- Does the proposed date, 1 August 2013, for the removal of the reduced rate present problems?
- Are there factors the Revenue should take into account when making this change?
Given nearly a year's prior notice of the withdrawal of this relief has been given, the government does not intend to provide additional transitional rules.
But where work has begun for the installation of energy saving materials before the date of withdrawal, the reduced rate will continue to apply to the whole installation even if some of it is performed after the date.
Responses should be sent by 20 October via HMRC’s website.
